Help Is Available On Starting Business

LONA O'CONNOR Managing Your Career

April 10, 1995|LONA O'CONNOR

From Oak Park, Mich., a reader sends a problem that may sound familiar:

"Please help me in establishing my business. I have the talent but no investment. I have some fantastic ideas and products both for imports and exports. I am going in circles. Nobody is there to actually guide me. There is too much red tape or I don't know how to approach people.

"Will you help me solve my problem? Really I want to start something of my own for two kids of mine who are going to college and the other will be very soon. I am laid off from my teaching job and getting nowhere.

"I can't drive because of physical disability. I want to be independent by working from home. Please help me."

FREE HELP. What you have going for you are your ideas and your drive to see them work. What you need - and fast - is someone to help you make those ideas happen.

Check the white pages of your telephone directory for the Small Business Administration's Service Corps of Retired Executives (S.C.O.R.E.), experienced business people who offer advice and tips you need. Also call your nearest university or community college; many provide free services for people who want to start businesses but don't know how. They can also guide you to other resources in your community. (Start with the university's business college but if they don't seem to know what you're talking about, keep asking until you find the right agency; now is as good a time as any to develop persistence, one of the most important characteristics a self-employed person needs.)

Once you have practical advice on how to form a business plan and how to make it happen, you can go from pie-in-the-sky to pie-on-the-table in the shortest time.

WHERE'S THE MONEY? Once you have a concrete business plan, you can begin to look for financial backing, from banks and private investors. These money people are going to want more than that glint of inspiration and determination in your eyes (although that helps). To convince any investor to loan you money, you must be able to answer specific questions, including what you will do with every dollar and how long it will take you to pay back their money.

With help from your phone book (local banks and local library,) you should be able to make a list of potential investors. Concentrate on those who may have a special interest in the product or service you're selling.

While you're at the library, check out some of the many helpful books and magazines on self-employment, starting a business and working out of your home. They can give you inspiration and a reality check and ideas about subjects you may not have considered, like how to keep the kids out of your office, which computer to buy and what to do about the loneliness and isolation of working long hours alone. One of the best general re-source books is Working From Home, by Paul and Sarah Edwards ($15.95, Tarcher/Putnam).

LEARN FROM REJECTION. You need only one "yes," but before you get it you will hear "no" many times. Don't just slink away. Ask the investor why he or she said no. This is one way to find flaws in your plan and eliminate them before approaching the next investor. Also before you move on, ask the investor for names of other sources of financing.

ENOUGH, ALREADY. Give yourself a deadline for re-evaluating and regrouping. It may be three or six or 12 months, depending on your financial situation.

This comes under the category of "Expect the best; prepare for the worst."

Next week: Cold comfort.

If you have had no substantial success by your deadline, consider other options. You can get relevant experience (and regular income) by taking a job, preferably with a company in the field of your interest.

If you have an idea, a question or a problem at work, write Lona O'Connor c/o Weekly Business, Sun-Sentinel, 200 E. Las Olas Blvd., Fort Lauderdale, Fla. 33301. Her column appears on Mondays.